I've been bearish on Boeing
This morning, Boeing broke the bad news:
- Revenues declined 9.2% from last year, to $15.6 billion.
- Margins slipped, and per-share profits tumbled 25% to $1.06 per share.
- Worst of all, Boeing now admits that it looks like both its 787 Dreamliner, and the 747-8 freighter will not arrive till 2011.
For anyone having anything to do with filling Boeing's supply chain -- Precision Castparts
I'll give you two good reasons.
No. 1: the 787
Yes, the 787 is posting as "delayed" on the flight arrival board up above. But did anyone really believe Boeing when it promised to deliver the plane this year? (I sure didn't.)
And even if they did, even if the stock suffers as a result of Boeing's latest broken promise, doesn't that set up the stock for an even stronger rebound when the plane does finally arrive? (I think so.) ANA, Delta
No. 2: the KC-X
Earlier this month, Boeing and Airbus submitted their final bids to build the Air Force's next-generation refueling tanker -- KC-X. Judging from the weeping, lamentation, and sounds of sackcloth rending in Boeing's PR department, you'd think Airbus had a lock on the contract thanks to its generous European subsidies, and the plunging cost of buying airplane parts in devalued euros.
Not so.
For months, we've seen Boeing gather momentum toward winning this contract. It began with a successful appeal of the initial KC-X award to Northrop Grumman
For all Boeing's protestations to the contrary, I still consider it the favorite in this contest, and the likely winner of anywhere from $35 billion to $50 billion (depending on whom you ask) in KC-X contracts.
You know the old saying: The night is darkest just before the dawn.
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